Gainesville home sales pick up momentum in November

Published: Thursday, December 20, 2012 at 12:13 p.m.

Last Modified: Thursday, December 20, 2012 at 7:49 p.m.

The housing market in Gainesville is riding the wave that has picked up home sales across the U.S. and in Florida, with continued momentum leading to a 24 percent increase in sales locally in November compared with November 2011.

But while increased prices indicate a clear recovery on the state and national levels, Gainesville’s market continues to struggle with a 4 percent drop in median prices in November.

Realtors reported sales of 166 existing single-family homes in November, up from 134 a year ago, according to data from the Gainesville Multiple Listings Service.

The median sales price, with half selling for more and half selling for less, was $155,000, down from $162,000 in November 2011 after prices were flat year-over-year in October.

Sales have been gaining momentum throughout much of the year and are up 12 percent for the first 11 months over the same period in 2011.

Prices have shown signs of stabilizing by bouncing up and down and are down 3 percent for the 11-month period — also to $155,000 — after facing double-digit decreases when the market crashed.

Craig Wilburn, president of the Gainesville-Alachua County Association of Realtors, said the 3 percent drop in prices is significant “because clearly we are really close to that proverbial bottom of the market. I do think that at some point in time next year, our numbers are going to show somewhat of an increase.”

Other figures point to continued momentum. Pending sales of homes under contract that have not yet closed were up 60 percent in November to 226 compared with 141 a year prior, while the inventory of homes on the market was down 17 percent.

At November’s pace of sales, the Gainesville market has a 9.1-month supply of inventory, down from 13.2 months a year ago. A 5.5-month supply is considered a balanced market favoring neither buyers nor sellers, according to Florida Realtors, after which prices could be expected to rise.

By comparison, Florida had a 5.1-month supply of homes in November and enjoyed a 24 percent increase in sales and an 11 percent increase in the median price to $150,000, Florida Realtors reported.

Nationwide, the National Association of Realtors reported a 4.8-month supply in November, while single-family home sales were up 12 percent and the median price was up 10 percent to $180,600.

Wilburn said prices are already up in certain market segments. For example, he said the Town of Tioga in Jonesville has a handful of homes for sale, “but there’s a whole lot of folks that want to live there. Now people are willing to pay more than they were willing to pay a couple years ago when there were less people buying homes.”

He said he has also seen a “strong surge” in custom home building in higher-end neighborhoods such as Tioga, Wilds Plantation and Cheney Walk Estates, although new home sales do not figure in the existing sales report.

NAR Chief Economist Lawrence Yun said in a news release that momentum is building in the housing market as a result of job growth. He also credited a “bursting out of household formation” as a result of lower rental vacancies and rising rents combined with historically favorable affordability.

The average for a 30-year, conventional fixed-rate mortgage dropped to a record low of 3.35 percent in November, according to Freddie Mac.

Sales of condominiums and townhomes in Gainesville dropped from 30 in November 2011 to 27 last month, a 10 percent drop, while the median sales price was up 12 percent to $71,500.

<p>The housing market in Gainesville is riding the wave that has picked up home sales across the U.S. and in Florida, with continued momentum leading to a 24 percent increase in sales locally in November compared with November 2011.</p><p>But while increased prices indicate a clear recovery on the state and national levels, Gainesville's market continues to struggle with a 4 percent drop in median prices in November.</p><p>Realtors reported sales of 166 existing single-family homes in November, up from 134 a year ago, according to data from the Gainesville Multiple Listings Service.</p><p>The median sales price, with half selling for more and half selling for less, was $155,000, down from $162,000 in November 2011 after prices were flat year-over-year in October.</p><p>Sales have been gaining momentum throughout much of the year and are up 12 percent for the first 11 months over the same period in 2011.</p><p>Prices have shown signs of stabilizing by bouncing up and down and are down 3 percent for the 11-month period — also to $155,000 — after facing double-digit decreases when the market crashed.</p><p>Craig Wilburn, president of the Gainesville-Alachua County Association of Realtors, said the 3 percent drop in prices is significant “because clearly we are really close to that proverbial bottom of the market. I do think that at some point in time next year, our numbers are going to show somewhat of an increase.”</p><p>Other figures point to continued momentum. Pending sales of homes under contract that have not yet closed were up 60 percent in November to 226 compared with 141 a year prior, while the inventory of homes on the market was down 17 percent.</p><p>At November's pace of sales, the Gainesville market has a 9.1-month supply of inventory, down from 13.2 months a year ago. A 5.5-month supply is considered a balanced market favoring neither buyers nor sellers, according to Florida Realtors, after which prices could be expected to rise.</p><p>By comparison, Florida had a 5.1-month supply of homes in November and enjoyed a 24 percent increase in sales and an 11 percent increase in the median price to $150,000, Florida Realtors reported.</p><p>Nationwide, the National Association of Realtors reported a 4.8-month supply in November, while single-family home sales were up 12 percent and the median price was up 10 percent to $180,600.</p><p>Wilburn said prices are already up in certain market segments. For example, he said the Town of Tioga in Jonesville has a handful of homes for sale, “but there's a whole lot of folks that want to live there. Now people are willing to pay more than they were willing to pay a couple years ago when there were less people buying homes.”</p><p>He said he has also seen a “strong surge” in custom home building in higher-end neighborhoods such as Tioga, Wilds Plantation and Cheney Walk Estates, although new home sales do not figure in the existing sales report.</p><p>NAR Chief Economist Lawrence Yun said in a news release that momentum is building in the housing market as a result of job growth. He also credited a “bursting out of household formation” as a result of lower rental vacancies and rising rents combined with historically favorable affordability.</p><p>The average for a 30-year, conventional fixed-rate mortgage dropped to a record low of 3.35 percent in November, according to Freddie Mac.</p><p>Sales of condominiums and townhomes in Gainesville dropped from 30 in November 2011 to 27 last month, a 10 percent drop, while the median sales price was up 12 percent to $71,500.</p>